November 11, 2022 12:55 GMT
US Holding Steady over LNG Uncertainty and Cooler Weather
US Natgas holding steady after ticking higher yesterday with uncertainty surrounding the return of Freeport LNG from the extended outage.
- US Natgas DEC 22 down -0.3% at 6.22$/mmbtu
- Below normal temperatures throughout the two week forecast period are providing price support but current domestic demand remains below normal at 72.7bcf/d.
- US dry gas production is holding steady this week averaging around 100.3bcf/d with high costs and production discipline limiting any increase.
- The Freeport LNG outage since June has restricted LNG exports and allowed US storage levels to recover. EIA data yesterday showed a +79bcf build in US inventories compared to the five-year average for this time of year of +28bcf. Total stocks are now just 1.95% below normal.
- Deliveries to US LNG export terminals are today at 12.06bcf/d due to higher supply to Sabine Pass and Calcasieu Pass after lower flows in the last couple of days.